ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has agreed on a basic capital participation agreement with PT Pasar Dana Pinjaman (hereinafter “PDP”), a wholly owned subsidiary of Sinar Mas Group in Indonesia.

PDP operates Danamas, a peer-to-peer (P2P) lending platform that connects borrowers and lenders through online services in Indonesia. Earlier this year, PDP registered a Fintech license for Danamas and launched P2P lending services. On this occasion, it decided to partner with ITOCHU in pursuit of ambitious business growth.

With the largest population among the ASEAN member states, over 250 million people, Indonesia is expected to maintain high economic growth in the coming years. Given the current expansion of the middle-class, further growth in demand for finance is expected from individual borrowers, along with sophisticated financial services that will provide greater accessibility in a range of areas to customers in Indonesia.

In response to the exponential increase in market demand, Sinar Mas Group and ITOCHU will jointly develop comprehensive financial services in Indonesia by expanding and enhancing services and functions with respect to: (1) Asset Management, (2) Personal Loan, (3) Electronic Settlements, (4) Loyalty Programs, and (5) Insurance, etc., while staying focused on the services delivered by PDP in the future.

ITOCHU has been engaged in the financial business for many years, delivering services to accommodate personal financial needs both at home and abroad. In recent years, it has further intensified its efforts in the Fintech business. ITOCHU aims to establish a platform that is capable of delivering comprehensive financial services in Indonesia, by leveraging its expertise and knowhow as well as offering functional capabilities and services that could facilitate the development of AI/big data analytics and others related to the Fintech business.

Sinar Mas Group is one of the largest conglomerates in Indonesia, engaged in an extensive range of businesses including finance, insurance, paper & pulp, agriculture/food, real estate and telecommunications. Sinar Mas Group and ITOCHU have established an excellent partnership for many years of business collaborations, including the joint development/management of Karawang International Industrial City (Jakarta) and a loyalty program (Excite Indonesia) through an affiliated company.

ITOCHU will remain committed to contributing to regional development, primarily in Asia, where further economic growth is expected with the increasing expansion of the middle-class, by promoting businesses that accommodate personal financial needs as well as the extensive demand for financial services.